Gold Trading Strategy Update: November 25, 2024
Several factors are currently putting selling pressure on gold:
Geopolitical Developments: The ceasefire agreement between Israel and Lebanon has eased market uncertainty, reducing gold's appeal as a safe-haven asset.
New Gold Reserves in China: Recently discovered reserves in China, valued at approximately USD 83 billion, are expected to lead to an oversupply in the market. This oversupply could stabilize gold prices in China's domestic market, potentially reducing its demand from the global market.
Technical Outlook:
After the U.S. elections on November 5, gold prices began a corrective phase, with spot gold dropping to the 2538 level. However, given that gold prices have risen by more than USD 1000 over the past two years, the initial correction has been relatively mild. A deeper correction, possibly retracing 50% of the recent impulse leg, could occur over the medium term.
Short-Term Analysis:
Following the recent drop to the optimal trade entry (OTE) level and a liquidity sweep, today's trading session (Monday, November 25) has already witnessed a significant 3% decline in spot gold prices. With technical indicators pointing towards further downside, we project a near-term target for spot gold at 2430, based on Fibonacci levels and the monthly fair value gap (FVG).
The summary:
The combination of geopolitical developments, increased supply expectations, and technical corrections suggests further downside potential for gold in the near term. Traders should monitor key support levels and market sentiment to refine entry and exit strategies.
Several factors are currently putting selling pressure on gold:
Geopolitical Developments: The ceasefire agreement between Israel and Lebanon has eased market uncertainty, reducing gold's appeal as a safe-haven asset.
New Gold Reserves in China: Recently discovered reserves in China, valued at approximately USD 83 billion, are expected to lead to an oversupply in the market. This oversupply could stabilize gold prices in China's domestic market, potentially reducing its demand from the global market.
Technical Outlook:
After the U.S. elections on November 5, gold prices began a corrective phase, with spot gold dropping to the 2538 level. However, given that gold prices have risen by more than USD 1000 over the past two years, the initial correction has been relatively mild. A deeper correction, possibly retracing 50% of the recent impulse leg, could occur over the medium term.
Short-Term Analysis:
Following the recent drop to the optimal trade entry (OTE) level and a liquidity sweep, today's trading session (Monday, November 25) has already witnessed a significant 3% decline in spot gold prices. With technical indicators pointing towards further downside, we project a near-term target for spot gold at 2430, based on Fibonacci levels and the monthly fair value gap (FVG).
The summary:
The combination of geopolitical developments, increased supply expectations, and technical corrections suggests further downside potential for gold in the near term. Traders should monitor key support levels and market sentiment to refine entry and exit strategies.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.